The International Monetary Fund (IMF) has praised China’s efforts to reorientate the economy towards domestic consumption as private consumption estimates soar.
Christine Lagarde, managing director of the IMF, emphasised the importance of China’s role in promoting a global recovery and its efforts to strengthen the domestic economy.
Lagarde says: “China is also on the right path in terms of reorienting the economy towards domestic consumption and in seeking more inclusive growth for its people, as laid out in the twelfth five-year plan.”
Research by asset manager Swiss & Global estimates China will comprise 23% of private consumption on a global scale by 2020. In 2010, the figure was closer to 5.8%.
The same research found that companies in China had increased pricing power by between 5% and 10% this year alone.
Scilla Huang Sun, manager of the £71.2m Julius Baer Luxury Brands fund predicts that the high end, luxury growth sector will grow by a further 10-12% in 2012 after an initial slowdown in the fourth quarter of this year.
China’s National Development and Reform Commission estimates that per capita disposable income of urban households saw annual growth rate of 5% between 2005 and 2010.
The eleventh five-year plan additionally prioritises the development of industrial structure, protecting the environment, strengthening independent innovation and a people-centred approach.
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